By Anthea Jeffery*
Draft preferential procurement regulations recently gazetted by the National Treasury suggest that Pravin Gordhan’s department has finally been captured by the black business lobby.
The Treasury has long resisted demands for increased preferential procurement, saying this leads to inflated prices and leaves less revenue available to meet the needs of the poor. But now its regulations (published for comment by 15th July) propose major increases in BEE procurement in various ways.
Under the Preferential Procurement Policy Framework Act of 2 000 (the Act), a 90:10 formula currently applies to tenders worth more R1m.